Cardano (ADA) whale wallets holding 10 million or more ADA tokens have risen to a 4-month high. This is not just a spike, but the growth has been gradual and consistent over the past 9 weeks, showing long-term conviction. This whale’s buying frenzy comes in the wake of ADA prices recovering.
ADA whales with 10 million token increase
According to Santiment, an on-chain metric tool, the whales’ wallets holding 10 million or more ADA have risen to a 4-month high. The specialty of the whale wallet, with 10 million reaching 424, is that the rise (+5%) has been gradual and consistent over 9 weeks.
An increase in wallets suggests that more addresses now meet the “large holder” threshold, which is often interpreted as upper-tier accumulation.
However, just because it hit a new high doesn’t always mean new participants are entering – it could just be that the existing large holders are increasing their balances or reorganizing funds across wallets.
Regardless of the situation, the key takeaway is that entities with significant capital are controlling a larger portion of the supply.
Whales accumulate stealthily without disturbing the prices
The quiet but consistent increase in the number of wallets shows that it’s a strategic accumulation by the whales. These whales and large institutions follow a strategy of accumulating consistently and quietly in silence to avoid moving the market.
As such, a steady, stealthy increase in their presence suggests quiet confidence and longer-term positioning. At the same time, as more supply becomes concentrated in these wallets, it reduces the amount of freely circulating liquidity available to retail traders.
One more point to note is that the number of whale wallets has been increasing despite the ADA price decline. When ADA goes downward while the number of large holders (whales) is gradually increasing, it creates a divergence between price action and on-chain behavior.
Market shakes off all weak hands
Although on the surface, the downtrend might show that the selling pressure is still dominant in the broader market. However, the steady rise in whale accumulation indicates that larger players are using the weakness in price to build positions rather than exiting.
This kind of behavior is visible when an asset is transitioning from distribution to accumulation. phase. When retail is selling, whales absorb the pressure.
In other words, think of it like the market is transferring ADA from traders with less patience or weaker participants to more strategic, long-term holders.
When the retail sentiment remains bearish as the prices fall, whales see this as an opportunity to accumulate quietly during such periods as the token trades at discounted prices and is more favorable.
However, this means that there is going to be an immediate reversal, but history reveals such patterns can precede trend shifts. When selling pressure wanes, demand starts to build and outweigh supply.
ADA prices recover as it forms the apex of the falling wedge
Looking at the 4-hour chart, ADA has been declining inside a falling wedge pattern, which breaks out upwards. At the early stage of a falling wedge, the price of the token is on the fall. Although it continues its downtrend, the selling pressure starts to weaken.
In particular, sellers keep pushing the market lower – forming lower highs and lower lows – but each new drop is lower, has less force, and the intensity of the crash drops more than the previous one. This is the first sign that bearish momentum is weakening.
Simultaneously, when the buyers see the sellers weakening, they step in earlier during each dip. This behavior causes the rate of decline to fall despite the overall structure still being downward.
As a result, the range of motion narrows. Mainly because both sides are active, but neither has full control. Volume often starts to decline slightly as conviction fades, and volatility begins to compress.
When closing, observe the prices; although it trades inside a falling wedge, the last few lows are not very low compared to the previous lows.
The last few lows are not lower but are of similar height to the previous lows. This shows consolidation or the early recovery stages. In fact, the relative strength index indicator at the bottom of the chart shows that the prices are recovering under cover. As such, the bulls have entered the market at the nick of time.
ADA price is just below the 50-day moving average, and it is the perfect spot to enter the market. Once ADA crosses above this indicator, then the short-term bullish trend will be established, and the whales, as always, get on the trend before it trends.
With the whales getting busy in the market, ADA won’t be having another lower low, and the falling wedge may be discontinued.
